Kitsap County is a seller’s market, and great listings can get multiple offers within days. So why are some houses not selling, or selling for much less than their potential value? It all has to do with the three P’s: Price, Promotion, and Product. Here are some common reasons that houses don’t sell… but skip to the end to read how sellers can get higher offers, even if they do find a buyer.
Reason #1: The home is overpriced.
Sellers often make the mistake of starting with a high asking price, and lowering it later if it doesn’t sell. But this is a terrible pricing strategy. That’s because the first 2 weeks on the market are the most important! The reality is, overpriced homes take a while to go under contract, and often sell for less than market value.
In a seller’s market like ours, the longer a home is for sale, the less desirable it becomes. Buyers just assume there is something wrong with older listings, and they only pay attention to new ones. Plus, the listing gets buried in the second or third page of search results. So an extended number of Days on Market (DOM) is the kiss of death in real estate.
Overpriced homes also attract fewer qualified buyers, reducing the buyer competition. While sellers can ultimately choose the asking price, the market sets the value of a home. Going above or below that value changes the number of buyers who will show interest.
Fair market pricing, based on your agent’s Comparative Market Analysis (CMA), can lead to strong interest and multiple offers, often in the first 2 weeks on market. And a bidding war between several motivated buyers is likely to result in a higher sales price. For these reasons, the right pricing strategy is crucial to selling your home quickly, and for the most value.
Reason #2: The home isn’t marketed or promoted well.
Another reason houses don’t sell is ineffective presentation. The purpose of a real estate listing is to get qualified buyers in the door to see the home. From staging your home to appeal to specific types of buyers, to writing quality listing descriptions and photo captions, every detail matters. That’s why I pay for professional photography and digital advertising, at no additional cost to you.
Many agents still rely solely on traditional marketing tactics, like flyers and postcards, to market home listings. But buyers in today’s market go online first to search for homes.
I specialize in advanced audience targeting to maximize exposure to qualified buyers through platforms like Facebook, Instagram, Google, email marketing lists, instant messaging apps, and display banner ads all over the web. With good online advertising, your listing should be getting thousands of clicks per week!
If your home isn’t selling, ask your agent for a weekly report on web traffic to the listing. Every home is unique, and has its own character, distinct features, and special qualities. Telling your home’s story through digital media is the key to extracting the most equity… and maximizing your profit.
Reason #3: The condition of the home doesn’t fit the price.
Sometimes, a home is priced too high for its location, features, age or condition (and other “product” aspects of real estate). Perhaps the pricing was based on a nearby property comp that has high end finishes, better views, or extra features. But sellers who want to command top dollar for their home may need to invest in some improvements first, like upgrading the kitchen or bathrooms.
The fix doesn’t always have to be costly. There are some easy ways to add curb appeal to your home, for example. And simple upgrades, like a new garage door or a fresh coat of neutral paint, can completely transform the look of your home. Replacing old light fixtures and sink faucets are just some ways we can quickly update your space. Or consider painting old cabinets and paneling. There’s no need to break the bank!
More commonly, buyers are scared of buying a money pit. A deteriorating roof, aging appliances, dry rot, foundation issues, plumbing and electrical problems, HVAC systems, mold and moisture concerns can sabotage the sale. That’s why it’s important to hire an agent who can skillfully negotiate inspections, and keep buyers at the table with win-win compromises.
The Secret to Getting Higher Offers
Most of the time, homes that sit on the market for a long time have a price issue (or the price doesn’t match the condition of the home). But because it’s a seller’s market, there is one more common scenario.
Homes sell every day for less than their potential value, due to the wrong pricing strategy, a lack of preparation, poor presentation, inadequate marketing and promotional efforts, and/or weak negotiations. All of which reinforce the point that who you hire matters—and that’s the secret to getting higher offers. If you’re looking to buy or sell a home, and want an agent who will listen and work hard to get your home sold for top dollar, call or text me at 360-979-6411.